Virgin Group may buy into AirAsia, says report

25 Jun 2007

1
Kuala Lumpur: Virgin Group owner, Richard Branson, may pick up a 20% stake in Malaysia's Fly Asian Express (FAX), which owns new long-haul budget airline, AirAsiaX, according to a report in the Star newspaper.

According to the report, Branson would take a 20 per cent stake in Fly Asian, an entity owned by Asia's aviation entrepreneur, Tony Fernandes, to run flights from Malaysia to China, Europe and Australia. The newspaper was citing sources familiar with the negotiations.

It said AirAsia chief executive, Tony Fernandes, and his deputy, Kamarudin Meranum would sell 20 per cent of their stake to Branson. While Fernandes has a 50 per cent stake in FAX, Kamarudin owns 30 per cent.

FAX recently signed a contract for 15 wide-body A330-300 airliners from Airbus, with the first new A330 due for delivery in the third-quarter of 2008. FAX is scheduled to begin long-haul flights to China and Australia from September 8.

Fernandes launched AirAsia as a pioneering regional budget carrier in December 2001, with just two aircraft. It now serves domestic and international routes throughout the region.

Fernandes also announced a more ambitious long-haul plan in January, which has drawn considerable skepticism from industry analysts, who feel that the business model will not work in spite of its success over short haul routes.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more